Bayside Capital acquires Akrion

The latest middle market turnaround acquisition for the fund comes shortly after it closed its second fund on $3bn.

Bayside Capital, a distressed debt and turnaround affiliate of middle market private equity firm HIG Capital, has purchased Akrion Systems, a provider of surface preparation equipment for semiconductors and solar panels. Financial details of the deal were not disclosed. 

The transaction was structured as an asset sale with a majority investment from Bayside. Members of Bayside’s team will serve on Akrion’s board while current management will continue to oversee the firm’s daily operations.

In 2007, Pennsylvania-based Akrion had estimated sales of nearly $40 million (€27 million). It plans to use the new investment to spur organic growth of its business.

Miami-based Bayside closed its second fund in June on $3 billion. The firm will use the money to provide equity infusions and refinancing packages to small- to mid-market companies experiencing financial hardships. Bayside also will use the fund to purchase existing debt on the secondary market.

Led by Levin Leichtman Capital Partners veterans Tiffany Kosch and Lewis Schoenwetter, Bayside targets companies with total enterprise values of less than $400 million. It typically pursues transactions of around $100 million.

The firm shares its Miami headquarters with affiliated fund HIG, which has $7.5 billion of equity capital under management.